What do you think generally about CCPs?
In 2007 the deregulation in OTC derivative markets caused the suprime crisis. Now we have CCPs to clear CDS transactions. US and European politicians want more regulation in the OTC derivative markets. Many EU financial leaders want to dry out the OTC derivative markets, only UK said that regulation must end.
In 1990-2000 OTC derivatives were not that interesting for banks as in 2007-2011, generating low earnings, now they serve as huge income guaranty.
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The causes of the subprime crisis where in place a lot earlier than 2007. It all began mid-end 1990's. When banks made serious money on ABS/MBS and later CDO's. Deregulations was already in place when the US government actively and publicly supported home ownership, hence the subprime mortgages due to decreasing margins. Clearly politicians don't know crap about derivatives and they let lawyers come up with rules and regulations about financial products they don't even understand. They try to show the public that they're doing something, just to secure their re-elections.
There can't be any regulation just for the sake of regulation, if they want regulation they have to understand WHAT they want to regulate.
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